IndusInd Bk to focus on retail segment to boost growth, cautious on microfin
This story was originally published at 18:10 IST on 18 October 2025
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--IndusInd Bk: Reviewing every business segment to look for opportunities
--IndusInd Bank: To ensure provision coverage ratio adequate at all times
--IndusInd Bank: Corporate lending segment to be key growth driver
--IndusInd Bank: Roadmap for growth seen strong hereon
--IndusInd Bk: Fincl impact of recent accounting discrepancies accounted for
--IndusInd Bank: Tightened underwriting standards for microfinance book
--IndusInd Bk: To build growth momentum in vehicle, retail segment near term
--IndusInd Bank: Retail segment to contibute meaningfully to our growth
--IndusInd Bank: Expect few more key leaders to join in coming months
--CONTEXT: IndusInd Bank mgmt's comments in post-earnings media conference
--IndusInd Bank: Remain cautious on microfinance disbursements
NEW DELHI – IndusInd Bank, which is reeling under the fallout of accounting discrepancies discovered earlier this year, aims to focus on various segments, especially retail, in the near term to revive growth momentum, the bank's newly appointed Managing Director and Chief Executive Officer Rajiv Anand said Saturday. "Our aim in the near term would be to build the growth momentum in areas of focus such as vehicle, retail, and the profitable part of corporate banking and, of course, retail deposit mobilisation," he said.
Anand, who was appointed as managing director and chief executive officer on Aug. 25, said the bank is reviewing every business segment to look for opportunities for growth. He said the roadmap to be able to grow from here is quite strong. "I am reviewing, along with the senior team, every single business, every single support function, to be able to see where the opportunities for us to improve are, where the opportunities for us to grow are. And that is something that will continue to be ongoing," he said.
IndusInd Bank fell back into the red in the September quarter due to higher-than-expected provisions on loans given in the microfinance segment. The private-sector bank reported a net loss of INR 4.45 billion for the quarter, failing to sustain the momentum seen in the June quarter, when it had reported a net profit of INR 6.84 billion for the first time after taking a hit in the March quarter from discrepancies in its derivatives portfolio accounting.
The lender said it remains cautious on microfinance disbursements and has tightened underwriting standards for the same. "We have tightened controls (on microfinance lending) and that has, in a sense, resulted in lower disbursals during the quarter," the management said. "But we do anticipate that as we go forward, over the next 4-6 months, this should start to normalise and then look to build for growth as we get into FY27."
The management said the impact of the probe into the bank's accounting discrepancies has already been taken into account in the financials. Besides, it said, it expects a few more senior leaders to join the bank in the next few months.
The bank said in its financial results that it has initiated the process of taking disciplinary action against persons who were involved in the discrepancies and irregularities discovered earlier this year. Asked if the officials who are found to have been involved, directly or indirectly, in the discrepancies will be asked to leave in the next couple of quarters, the management replied in the affirmative.
On the jump in provisions for the September quarter, the management said, "What you are seeing now is an accelerated provision to, in a sense, make the balance sheet stronger rather than postpone the problem. We are actually going up with an accelerated provision to help us strengthen and fortify the balance sheet." The bank made a provision of INR 26.22 billion during the quarter, up 44% on year and 51% on quarter. This was also sharply higher than the provision of INR 15 billion expected by analysts.
"Ultimately, the focus will be to ensure that we are adequately covered as far as our stress portfolio is concerned," it said. "I think our focus will be to ensure that provision coverage ratio is adequate at all times. IndusInd Bank's provision coverage ratio was at 72% as on Sept. 30. On Friday, shares of IndusInd Bank ended 1.6% higher at INR 751 on the National Stock Exchange. End
Reported by Pratiksha and Pallavi Singhal
Edited by Rajeev Pai
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